Business Level and Corporate Level Strategies
Running Head: Business Level and Corporate Level Strategies
Business Level and Corporate Level Strategies
Geri E. Shaffer
Professor: Luke White
Business Admin Capstone (BUS 499)
Strayer University, Charleston Campus
7 September 2014
1
Business Level and Corporate Level Strategies
2
Business Level and Corporate Level Strategies
Analyze the business-level strategies for the corporation you chose to determine the businesslevel strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
The company I decided to research and write about is Southwest Airlines. I recently flew
Southwest from Charleston to Minnesota and was surprised at first on how they operated but as I thought about how they did business, like no seat assignments, I began to realize that this is a better way because it allows people to fly at a much lower cost than other airlines. I feel the most important business level strategy for Southwest is the Cost Leadership Strategy for their long-term success. Although I was frustrated with the fact that I couldn’t sit next to my friend at first once I settled down and took a deep breath I came to the realization that it really doesn’t matter because we get to the same place at the same time and we have the week to be together. Some people may not agree or become angry but it all plays out the same.
The Cost Leadership Strategy is one that is set up to produce a acceptable service to their customers at the lowest cost possible. In this strategy the company is always looking for ways to lower their costs by always rethinking how they can save money but still have the same product or service that the customers want all the while ensuring that they can maintain the competitive levels of differentiation. When using this strategy a firm must also examine their support activities so they can find more cost reductions (Hitt, et. all, 2013).
Business Level and Corporate Level Strategies
Geri E. Shaffer
Professor: Luke White
Business Admin Capstone (BUS 499)
Strayer University, Charleston Campus
7 September 2014
1
Business Level and Corporate Level Strategies
2
Business Level and Corporate Level Strategies
Analyze the business-level strategies for the corporation you chose to determine the businesslevel strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
The company I decided to research and write about is Southwest Airlines. I recently flew
Southwest from Charleston to Minnesota and was surprised at first on how they operated but as I thought about how they did business, like no seat assignments, I began to realize that this is a better way because it allows people to fly at a much lower cost than other airlines. I feel the most important business level strategy for Southwest is the Cost Leadership Strategy for their long-term success. Although I was frustrated with the fact that I couldn’t sit next to my friend at first once I settled down and took a deep breath I came to the realization that it really doesn’t matter because we get to the same place at the same time and we have the week to be together. Some people may not agree or become angry but it all plays out the same.
The Cost Leadership Strategy is one that is set up to produce a acceptable service to their customers at the lowest cost possible. In this strategy the company is always looking for ways to lower their costs by always rethinking how they can save money but still have the same product or service that the customers want all the while ensuring that they can maintain the competitive levels of differentiation. When using this strategy a firm must also examine their support activities so they can find more cost reductions (Hitt, et. all, 2013).
References: Brock, Terry (14 September 2013). Delta vs. Southwest and $200 Cancellation Fee Retrieved from http://terrybrock.com/delta-vs-southwest-and-200-cancellation-fee/ Forbes Website (2012). Forbes Earning Preview: Southwest Airlines. http://www.forbes.com/sites/narrativescience/2013/01/19/forbes-earnings-previewsouthwest-airlines-4/ Frances, Abey (24 September 2010) Krogue, Ken (14 February 2013). A Few Key Difference Between Southwest and Delta. Retrieved from http://www.forbes.com/sites/kenkrogue/2013/02/14/a-few-keydifferences-between-southwest-and-delta/ Maxon, Terry (29 December 2013)